Shun Tak Holdings (0242) AI Stock Analysis

• Market Cap: HK$1.99B
• Dividend Yield: N/A
• Average Volume (3M): 3.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -21.25%
• EPS Growth: 24.06%
• Country: HK
• Employees: 1,709
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -0.04
• Shares Outstanding: 3,017,661,900
• 10 Day Avg. Volume: 2,191,226
• 30 Day Avg. Volume: 3,281,627
• PEG Ratio: -0.11
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 1.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(53.85% Upside)

Shun Tak Holdings faces significant challenges with profitability and cash flow, reflected in its financial performance score. Technical indicators suggest a bearish trend, and poor valuation metrics further weigh down the stock's attractiveness. Improvements in operational efficiency and revenue growth are crucial for enhancing its financial health.

Positive Factors

Balanced Leverage

A balanced leverage position with a debt-to-equity ratio of 0.51 indicates financial stability, enabling the company to manage its obligations without excessive risk, supporting long-term operational sustainability.

Strong Gross Profit Margin

A strong gross profit margin of 49.9% suggests effective cost management and pricing strategy, providing a buffer against revenue fluctuations and supporting potential profitability improvements.

Diversified Revenue Streams

Diversification across transportation, property, and hospitality sectors reduces dependency on a single revenue stream, enhancing resilience against sector-specific downturns and supporting long-term growth.

Negative Factors

Declining Revenue

A significant decline in revenue growth at -21.25% indicates challenges in maintaining market share and competitiveness, which could impact long-term financial health and market position.

Negative Net Income

Ongoing net losses and negative net income highlight profitability issues, which may hinder reinvestment capabilities and shareholder returns, affecting long-term business viability.

Cash Flow Volatility

Volatility in cash flow generation and inconsistent free cash flow figures raise concerns about the company's ability to sustain operations and fund growth initiatives, impacting long-term stability.

Shun Tak Holdings Business Overview & Revenue Model

Company Description

Shun Tak Holdings Limited, an investment holding company, engages in property, transportation, hospitality, and investment businesses in the People's Republic of China and internationally. It develops and sells hotel, commercial, and residential properties; leases retail, office, and residential properties; and offers property and facility management services for residential developments, clubhouses, office towers, shopping malls, and carparks. The company also offers passenger sea and land transportation services across destinations within the Pearl River Delta connecting cities, such as Hong Kong, Macau, Zhuhai, Shenzhen, and Shekou under the TurboJET brand name. In addition, it operates hotels and golf clubs, as well as offers MICE and transportation services; invests in gaming concessionaires; and operates toy stores under the Toys'R'Us name. Additionally, the company provides financing; hospitality management and auxiliary; and travel agency services. Shun Tak Holdings Limited was incorporated in 1972 and is based in Central, Hong Kong.

How the Company Makes Money

Shun Tak Holdings generates revenue through several key streams: first, its transportation segment, which includes ferry services, earns money from ticket sales and related ancillary services. Second, the property development and investment division generates income through the sale and leasing of residential and commercial real estate. Additionally, the hospitality segment contributes revenue through hotel room bookings, food and beverage services, and event hosting. The company has strategic partnerships with various stakeholders in the tourism and real estate sectors, enabling it to expand its reach and enhance its service offerings, which further boosts its earnings.

Shun Tak Holdings Financial Statement Overview

Summary

Shun Tak Holdings is facing profitability and cash flow challenges, with persistent net losses and declining revenues. Despite a stable balance sheet with manageable leverage, the negative net profit margin and inconsistent cash flow generation are significant concerns.

Income Statement

Shun Tak Holdings has experienced a decline in revenue over the past few years, with a significant drop from 2019 to 2022. The company is also facing persistent net losses, as indicated by negative net income figures for the past few years. Gross profit margin is relatively strong at approximately 49.9% in 2024, but the negative net profit margin is a major concern, indicating that the company is struggling with profitability.

Balance Sheet

The company maintains a healthy equity base with a debt-to-equity ratio of approximately 0.51 in 2024, showcasing a balanced leverage position. However, the company's total assets have been decreasing, which could affect future growth opportunities. Return on Equity is negative due to negative net income, which is concerning for shareholder returns.

Cash Flow

Shun Tak Holdings has shown volatility in its cash flow generation, with inconsistent free cash flow figures. The operating cash flow to net income ratio is not calculable for 2024 due to zero operating cash flow, which raises concerns about the company's ability to generate cash from operations. The absence of free cash flow growth further indicates challenges in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.88B	4.07B	3.49B	4.83B	4.19B
Gross Profit	2.39B	2.43B	1.85B	1.25B	1.96B	1.78B
EBITDA	1.03B	962.71M	233.38M	523.12M	2.09B	1.93B
Net Income	-516.29M	-823.95M	-676.73M	-558.22M	962.43M	262.44M
Balance Sheet
Total Assets	50.20B	50.20B	51.82B	55.02B	59.56B	60.94B
Cash, Cash Equivalents and Short-Term Investments	8.48B	7.81B	6.63B	6.55B	7.82B	5.48B
Total Debt	15.17B	15.54B	15.69B	16.03B	17.79B	18.04B
Total Liabilities	17.02B	17.47B	17.76B	19.24B	21.34B	23.02B
Stockholders Equity	31.10B	30.44B	31.72B	33.39B	35.36B	35.08B
Cash Flow
Free Cash Flow	2.57B	1.83B	1.45B	778.57M	2.05B	747.33M
Operating Cash Flow	2.61B	1.89B	1.72B	1.11B	2.18B	848.91M
Investing Cash Flow	-1.27B	-683.01M	-927.25M	-682.86M	-213.73M	-1.47B
Financing Cash Flow	-1.79B	-780.21M	-1.34B	-1.17B	-420.21M	-4.88B

Shun Tak Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0242, the sentiment is Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.70, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0242.

Shun Tak Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0050	69 Neutral	HK$1.72B	8.76	2.77%	5.22%	-0.67%	3.24%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1168	60 Neutral	HK$2.18B	0.43	46.53%	―	26.59%	―
0251	50 Neutral	HK$812.87M	-3.63	-5.69%	3.85%	-1.26%	54.17%
0978	50 Neutral	HK$1.35B	-0.71	-20.96%	4.36%	-16.06%	-529.92%
0480	50 Neutral	HK$1.62B	-2.05	-3.56%	―	72.75%	25.44%
0242	49 Neutral	HK$1.99B	-3.80	-1.67%	―	-21.25%	24.06%